The intergenerational education spillovers of pension reform in China
“Economic theory establishes that pension privatization weakens the link between old and young and so reduces the incentive to invest in public education in an economy with lower return rate of capital than growth rate of wage. However, empirical studies of the link change are few. In this paper, we investigate the effects of pension privatization and the central government’s subsidy to individual accounts on public education spending in a three-period overlapping generation model. And then, we take contemporary pension reforms in a number of Chinese provinces as offering natural experiment conditions. Using a difference-in-difference framework and 282 municipal districts panel data over years 1998–2009, we test the pension-education theoretical link change. Both our theoretical and empirical results confirm that pension privatization is adversely associated with local public spending on education in China. Private pension subsidies, moreover, magnify this effect. Our study supports the theoretical assertion and selective empirical findings of a negative intergenerational effect of pension privatization.”
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In this issue
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The intergenerational education spillovers of pension reform in China
Cheng Yuan, Chengjian Li & Lauren A. Johnston
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Private versus public old-age security
Richard C. Barnett, Joydeep Bhattacharya & Mikko Puhakka
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Parental retirement timing: the role of unanticipated events in the lives of adult children
Marina Miller, Christopher R. Tamborini & Gayle L. Reznik
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Why are fewer married women joining the work force in rural India? A decomposition analysis over two decades
Farzana Afridi, Taryn Dinkelman & Kanika Mahajan
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Does it pay to care? Volunteering and employment opportunities
Stijn Baert & Sunčica Vujić
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Informal search, bad search?: the effects of job search method on wages among rural migrants in urban China
Yuanyuan Chen, Le Wang & Min Zhang
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Social networks and the labour market mismatch
Eleni Kalfa & Matloob Piracha
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The effect of female education on marital matches and child health in Bangladesh
Youjin Hahn, Kanti Nuzhat & Hee-Seung Yang
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The long-term effects of mistimed pregnancy on children’s education and employment
Cuong Viet Nguyen
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The long-term effect of childhood poverty
Rune V. Lesner
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Klaus F. Zimmermann
Editor-in-Chief, Journal of Population Economics
President, GLO
The Global Labor Organization (GLO) supports the Journal of Population Economics.
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